You can save on your electricity bills by generating solar power through the on-grid solar system. If you install DCR-certified and ALMM-listed panels, you can become eligible for the PM Surya Ghar Scheme and get a subsidy of up to Rs. 78,000. Your DISCOM can use the electricity supplied by your solar system to the grid to meet the power demands of its customers. Here’s how an on-grid solar system works.

What is an On Grid Solar System?

An on-grid solar system is a solar system which is connected to your DISCOM’s grid. The solar system generates electricity in the daytime and exports the electricity to the DISCOM’s grid.

This is fundamentally different from an off-grid solar system. In an off-grid solar system, the electricity is stored in a battery. Thus, the maximum solar electricity that you can store is equal to the maximum capacity of the battery.

How Much Electricity Bill You Will Pay With On Grid Solar System?

Let us take an example to illustrate how an on-grid solar system works. For example, if you consume 400 units of electricity and your solar system generates 300 units of electricity in a month, your net consumption of electricity will be 100 units. If the electricity tariff is Rs. 8/unit, you will only have to pay Rs. 800.

Now consider the reverse scenario. If your solar system exports 400 units of electricity and you consume 300 units of electricity, you will earn electricity credits of 100 units. Thus, you save Rs. 800. This credit will be rolled over monthly. If you have electricity credits left after the year is over, the credits will lapse. You may get compensated for the electricity you export to the grid according to your state government’s policy.

Role of a Net Meter in an On-Grid Solar System

A vital component of an on-grid solar system is the net meter. A net meter is a bidirectional device. What that means is it measures the export of electricity from your solar system and the import of electricity by your house from the DISCOM’s grid. A net meter measures your net consumption of electricity.

Benefits of an On-Grid Solar System

Here are the major benefits of an on-grid solar system:

1. Save on Your Electricity Bills

As has been illustrated above, if you install an on-grid solar system, you will pay only for your net consumption of electricity. You can even earn monthly electricity credits if the electricity you export is greater than the electricity you import. Whether you will earn any amount or the credit for net exported electricity will lapse depends on the policy of your state.

2. No Money Spent on Battery

Unlike an off-grid solar system, you don’t need a battery to store the solar electricity in an on-grid solar system. The electricity is stored in the DISCOM’s grid. From there, it is sent to meet the electricity needs of DISCOM’s customers.

3. No Cap on Electricity Generation

In an off-grid solar system, a solar system owner can only use as much solar electricity as the battery can store. Once the battery is fully charged, any further generation of solar electricity is simply wasted.

On the other hand, an on-grid solar system can generate as much solar electricity as possible. So if you go on a vacation, the solar system will generate electricity throughout the period and send the unused electricity to the grid.

4. Reduces the Transmission Cost for DISCOMs

A DISCOM’s grid supplies electricity generated from its thermal power plant. The transmission of power from the thermal power plant entails a certain cost. By exporting solar electricity to the grid, you help the DISCOM’s grid to save on the thermal power generation cost.

5. Reduces Reliance on Coal 

There are 2 ways to look at the reduction in reliance on coal:

● Burning of coal leads to global warming and pollution. By using solar electricity, you help to make the planet a cleaner and greener place.

● India is dependent on importing coal. If more people use solar electricity, it will help reduce India’s coal import bill.

6. Fulfilling Eligibility Criteria of PM Surya Ghar

Under PM Surya Ghar, you can get a subsidy of up to Rs. 78,000 for installing your solar system. One of the eligibility criteria for the subsidy is the installation of net metering. This is because the scheme is only available for on-grid solar systems. If you have installed DCR-certified and ALMM-listed panels in an on-grid solar system, you could be eligible for PM Surya Ghar subsidy.

Can I Add A Battery To An On Grid Solar System?

Yes, you can add a battery to an on-grid solar system. In such a case, it is called a hybrid system. “Hybrid” refers to the fact that it has features of an on-grid as well as off off-grid solar system. The system will store power in the battery as well as export it to the grid. This will prove useful in times of power outages. During a power outage, though your DISCOM will not send power to your house, you can still use the electricity stored in your battery.

Considerations Before Installing On-Grid Solar System

Here are some factors to consider before installing an on-grid solar system:

1. Shadow Area

You must ensure that no shadow falls on the area where you will install your rooftop solar installation. A shadow can drastically hamper the productivity of a solar system.

2. Angle at Which Sunlight Falls on the Panels

A solar system generates maximum electricity when sunlight falls perpendicularly on a panel. Try to set up your panels so that sunlight falls on the panels with very little slant for much of the day.

3. Electricity Needs

You must analyse your electricity bills to estimate how much electricity your system must generate to reduce your electricity bills to zero.

4. Payback Period

Installing an on-grid solar system needs a significant investment. You can divide the total investment by the monthly savings it generates to calculate the time in which you can recover your investment.

At Das Energie Private Limited, you can get the best quotations to install a solar system. They onboard DISCOM-empanelled vendors after thoroughly vetting them. The vendors have the skills and experience to ensure a seamless installation.

An on-grid solar system is connected to your DISCOM’s grid. You only have to pay the bill for your net consumption of electricity. You can even earn monthly electricity credits if your electricity export exceeds the imports.